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Trump, Xi spark another standoff with world economy at risk

Bloomberg
Bloomberg • 5 min read
Trump, Xi spark another standoff with world economy at risk
The question now is which side blinks first / Photo: Bloomberg
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US President Donald Trump and Chinese leader Xi Jinping’s latest tit-for-tat showdown reached a standoff on Monday, with both countries claiming the ball was now in the other’s court.

After Trump signalled openness to doing a deal with Beijing, US Vice President JD Vance on Sunday declared the outcome would “depend on how the Chinese respond.” Hours later, China’s Foreign Ministry made clear Beijing would take its cues from Washington’s next steps, after having already unleashed what it saw as retaliatory actions.

“If the US continues on its wrong course, China will firmly take necessary measures to safeguard its legitimate rights and interests,” Foreign Ministry spokesman Lin Jian said at a regular briefing in Beijing. Chinese authorities haven’t yet retaliated to Trump’s threat to impose 100% tariffs over their latest rare-earth curbs, with the levies not formally written into policy.

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